Counsel in China have revealed a lack of enforcement of the
country’s amended Company Law by local officials,
as the central government seeks to ease restrictions on foreign
investment enterprises (FIEs).
On October 28, the Ministry of Commerce (Mofcom) issued new
rules removing minimum registered capital previously imposed on
FIEs and PRC holding companies, two years since the Company Law
was first amended.
But counsel have dismissed it as a mere clarification of the
previous amendments, arguing that local enforcement of the new
measures has been weak even with the announcement made in late
"Two years after the Company Law was amended, we still run
into local officials who, regardless of what the law says,
still want FIEs and PRC holding companies to commit to a